Audit 389842

Significant Deficiency/ Immaterial Non-Compliance Finding 2025-001: Procurement. U.S. Department of Education Passed-through Mississippi Department of Education Program Name: Special Education – IDEA Part B Program Assistance Listing Number: 84.027 Compliance Requirement: Procurement CRITERIA: Recipients of federal funds must follow federal procurement rules and regulations. For services in excess of $10,000, the district is required to obtain two quotes and/or proposals. CONDITION: During our testing of expenditures from the Special Education – IDEA Part B program, we noted the district expended in excess of $10,000 with a vendor on therapy services for special education students. The services do appear to be for allowable costs and activities under the IDEA Part B grant. However, the district was unable to provide evidence that a required second quote and/or a proposal was obtained. CONTEXT: The school district did not follow requirements related to procurement of goods and services. CAUSE: The cause is a result of not properly implementing a designed system of accounting and internal controls. EFFECT: Noncompliance with state and federal purchasing laws. IDENTIFICATION OF REPEAT FINDING: No. QUESTIONED COSTS: None RECOMMENDATION: The school district should implement policies and procedures to ensure all applicable compliance requirements are being met. VIEWS OF RESPONSIBLE OFFICIALS: We will implement policies or procedures to establish an internal control system that will ensure strong financial accountability, including compliance with state and federal purchasing requirements.